Find a Bankruptcy Lawyer in Yuma, Arizona

Find the right Bankruptcy attorney in Yuma, AZ

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In Yuma, Arizona, bankruptcy is a court procedure in which a person or business has some or all of their debts cleared (or "discharged"), theoretically allowing them to begin with a clean slate, and move on with their lives no longer drowning in debt (and hopefully having learned to better manage their use of credit in the process). Of course, one should never view bankruptcy as a "get out of debt free" card, allowing someone to be absolved of their requirement to pay their debts just because they don't want to. It is meant to serve as a lifeline, preventing uncontrollable debt from resulting in complete financial ruin. Accordingly, it is best treated as an option of last resort, because it can carry with it significant negative consequences, which must be weighed against the possible benefits. For example, filing for bankruptcy can heavily damage a person's credit rating.

Accordingly, it might be a good idea to consult with a Yuma, Arizona bankruptcy attorney. Your lawyer will be able to counsel you about your options, including alternatives to bankruptcy, if such alternatives exist in your case. Whatever the result, it is often hard to predict the long-term consequences of any bankruptcy-related decisions, so the advice of a bankruptcy in Yuma could prove invaluable.

Types of Bankruptcy in Yuma, Arizona

In Yuma, Arizona, there are 3 types of bankruptcy in common use: Chapter 7, Chapter 13, and Chapter 11. Because bankruptcy is a result of federal law, the procedures governing bankruptcy in Yuma, Arizona will be similar everywhere else in the U.S. Chapter 7 bankruptcy requires the debtor to liquidate some of his or her assets in order to pay off as much debt as possible. Once the sale of the assets is verified, and the proceeds handed over to the creditors, the debt is perceived as discharged. Liquidation is basically selling assets to the highest bidder. Not all of the debtor's assets will need to be sold, and many types of property are completely or partially exempt, including homes, cars, retirement accounts, and insurance policies. This means that the debtor can keep them. It should be noted that some types of debts are not dischargeable in Chapter 7 bankruptcy, including student loans, criminal fines, taxes, and child support payments. Even when the bankruptcy process is complete, these debts will have to be paid in full.

The other popular bankruptcy system in Yuma is Chapter 13 bankruptcy. Under this system, the debtor's debts are restructured, instead of discharged. This involves creating a new repayment plan that the debtor will find manageable, given his or her income, and that will result in the creditors being paid in a decent amount of time. When a repayment plan is authorized by a court, creditors are legally barred from trying to collect under the original terms of their contract with the debtor. Though Chapter 11 bankruptcy can be used by individuals, it is almost always used by businesses. Similar to Chapter 13, Chapter 11 involves restructuring of debts, rather than complete discharge. The debtor is required to come up with a restructuring plan that lays out how it plans to cut costs, streamline operations, and pay its debts. The plan must then be authorized by a vote of participating creditors.

During the Chapter 11 process, a business can normally continue its operations, and the stock can be traded, even if it is de-listed from a major stock exchange.

How Can a Yuma Bankruptcy Lawyer Help?

The need to consider all the options and consider the costs and benefits of applying for bankruptcy in Yuma cannot be overstated. If you are considering filing for bankruptcy, it would be a good idea to speak with a Yuma bankruptcy attorney beforehand.

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Life in Yuma

With a population of just under 80,000 Yuma, Arizona is one popular city to live and work. Because of the beautiful weather and location, over 85,000 retirees make the Yuma metropolitan area their home at least part of the year. In fact, Yuma is considered the sunniest place on earth according to the Guinness Book of World Records.

Catering to both their older and younger residents, Yuma has numerous golf courses, spas, malls, parks and other recreation centers. The picturesque city takes advantage of its location on the Colorado River and residents and visitors can enjoy the River by kayaking down on the weekend.

Yuma is home to a number of educational facilities including a branch of Northern Arizona University and the University of Phoenix. With such an emphasis on education, it is of little surprise that so many great lawyers choose to live and practice in Yuma. Yuma lawyers are some of the best in the business and enjoy the sunny city and helping their client resolve his or her legal issue as quickly as possible.